By Adam Wasserman
Dec 16, 2025 02:30 PM
What Does “Full Coverage” Actually Mean?
A lot of people tell me, “Don’t worry, I have full coverage.” But here’s the truth: “full coverage” doesn’t actually mean anything.
It’s not a legal term. It’s not a guarantee. And it definitely doesn’t mean you’re fully protected after a crash.
Let’s break down what you’re really buying, and what you might not have.
What People Think Full Coverage Means
Most drivers assume “full coverage” means:
- Their car is protected
- Their injuries are covered
- They’re covered no matter what happens
In reality, when people say “full coverage,” they’re usually talking about their car, not their body.
What Full Coverage Usually Refers To
It often means your auto policy includes:
1. Collision Coverage
Pays to fix your car if you hit someone or something.
2. Comprehensive Coverage
Pays for things like theft, vandalism, fire, hitting a deer, or storm damage.
These protect your vehicle. They do not protect you.
What Actually Protects You in a Crash
If you’re injured, the coverages that matter are totally different:
PIP (Personal Injury Protection)
Covers medical bills and lost wages, regardless of fault. Required in both Delaware and Pennsylvania (though PA allows waivers).
Uninsured Motorist Coverage (UM)
Protects you if the at-fault driver has no insurance.
Underinsured Motorist Coverage (UIM)
Protects you if the at-fault driver doesn’t have enough insurance.
These are the coverages most people don’t check, and the ones that matter the most when someone is badly hurt.
Where People Get Burned
Drivers think they’re protected because they “have full coverage.” Then a crash happens, and they realize:
- They only have minimum PIP
- They waived UM/UIM to save money
- Their bodily injury limits are too low
- Their coverage protects their car, not their injuries
If someone hits you and doesn’t have enough insurance, your “full coverage” won’t help unless you have strong UM/UIM limits.
Why It Matters
It’s common for clients to tell me they have “full coverage,” and then we find out:
- They only have $15,000 of PIP
- They waived UM or UIM entirely
- They’re depending on the other driver’s insurance to fix everything
That’s not protection. That’s a gamble, and a bad one.
Final Word
If your policy says “full coverage,” don’t assume you’re safe. Look at the coverages that actually protect you, not just your vehicle.
The most important parts of your policy are the ones insurance companies hope you won’t notice: PIP, UM, and UIM. Those are the coverages that save people financially after a serious crash.
If you’re not sure what your policy really includes, have someone take a look at it before you find out the hard way.
